Edenred said Wednesday expected stability of its profits on the full year 2010, whereas the volume growth in the second half would be affected by rising unemployment in Europe and low rates.

The former branch of prepaid group Accor, independent since July, said a target operating income of between 300 and 330 million euros in 2010 and has reported a decline in its operating income the first half.

The share fell after these announcements. The group's forecasts were considered "only in conformity" with the consensus of analysts. "The management has set a target in the range of consensus.There was no guidance on the use of cash, "said an operator based in Paris.

In 2009, the activities of Edenred, formerly named Accor Services, had reached an operating income of 327 million euros.

Around 15:45, Edenred, introduced on the market July 2, lost 1.23% to 13.64 euros after a low of 13.15 hit in the morning.

"In the second half, growth in the volume of emission should still be affected by rising unemployment in Europe.In addition, in a context of declining interest rates, financial turnover is forecast to fall in the range of 10-20% in the second half, "said Edenred in a statement.

In the first half, issuance volumes have signed up 7.5% to 6.61 billion euros.For future years, Edenred wants to grow annual volumes by 6% to 14%.

The group relies on the effects of its presence in more than 50% in emerging markets where growth prospects of the economy are more positive than in Europe, particularly in Brazil.

During a conference call with analysts, CEO Jacques Stern said the group's strategy for dividend is set in early 2011 but that he would propose a payout ratio of 50%.

The officer also noted that the group could make acquisitions this year for amounts less than 100 million euros.

LOAN BOND

The CFO Jenouvrier Loic for his part argued that the company did not rule out launching a bond issue in the coming months to refinance a loan over from some 600 million euros.

Edenred provides prepaid meal vouchers as well as prepaid cards and insurance for employees of business. The company compares to the European level, groups catering Sodexo and Compass and overseas, to Mastercard and Visa.

The company reported an operating income of 155 million euros in the first six months of the year, down 7.1%.On a comparable basis, it marks a decline of 2.4%.

Net operating profit after tax grew by 2.9% to 72 million euros while sales, according to what had been the company announced July 19, up 3.8% to 461 million.